Ningbo Haitian Precision Machinery Co.,Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Ningbo Haitian Precision Machinery Co.,Ltd. (SHSE:601882) shareholders are probably feeling a little disappointed, since its shares fell 3.7% to CN¥23.00 in the week after its latest full-year results. It looks like the results were a bit of a negative overall. While revenues of CN¥3.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.2% to hit CN¥1.00 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Ningbo Haitian Precision MachineryLtd's four analysts is for revenues of CN¥3.85b in 2025. This reflects a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 21% to CN¥1.21. In the lead-up to this report, the analysts had been modelling revenues of CN¥3.84b and earnings per share (EPS) of CN¥1.26 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

See our latest analysis for Ningbo Haitian Precision MachineryLtd

Despite cutting their earnings forecasts,the analysts have lifted their price target 7.4% to CN¥29.11, suggesting that these impacts are not expected to weigh on the stock's value in the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Ningbo Haitian Precision MachineryLtd, with the most bullish analyst valuing it at CN¥28.24 and the most bearish at CN¥25.92 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Ningbo Haitian Precision MachineryLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 16% annually. Factoring in the forecast slowdown in growth, it looks like Ningbo Haitian Precision MachineryLtd is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Ningbo Haitian Precision MachineryLtd going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Ningbo Haitian Precision MachineryLtd that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.